Should you sell or wait for a better price?

Should you sell or wait for a better price?

Category News

Despite the hastening of interest rate hikes amid rising inflation and global economic stressors, the Cape Town property market is still performing above average compared to the rest of the country, especially the other major metros.

In fact, a recent opinion piece by John Loos, property sector strategist from FNB, points towards the Cape Metro property market as simply on a trajectory of its own. This includes the highest volume of new building plans which is always an indicator of strength and growth in the market.

Lightstone and Propstats data support this and show that overall the Cape Metro is still trending above the pre-pandemic sales levels. Aside from continued activity from locals moving about and getting into the market, a resurgence of semigration from upcountry provinces and more recently also from KZN is driving demand.

At the same time, international buyers continue flocking to the city's property market, predominantly in the coastal suburbs. Investment into property by international buyers is at the highest it has been in many years.

We are also still seeing higher and faster sales compared to the other metros. Lightstone data for example noted that sales for the first half of the year was the highest since 2017. Even the higher price bands are still seeing strong activity across the Cape Metro property markets.

As we head into the latter part of the year, the Hout Bay property market is already close to the "magic" R1 billion mark in property sales with almost half of that resulting from sales above the R5 million price band.

While there may be an inevitable downward trend as the interest rates and rising costs start impacting on consumers and buyers, the question arises whether it is a good time to sell, or whether sellers should wait. A market decline would mean fewer buyers and lower prices.

Is it still a good time to sell, or should sellers wait for a better price?

While the right time to sell depends on the motivation and needs of the seller regardless of market conditions, analysts are pointing to a still favourable phase for sellers in the Cape market.

We are still seeing the Hout Bay and Llandudno market as favourable for sellers. It is still well-balanced in terms of buyer demand with some stock shortages in certain price bands. As we progress into the busier summer months, we are also likely to see sustained demand.

That means that it is still a great time to sell, provided your price is right for the market. It, however, does not mean that sellers can increase their asking prices. The reality is that despite the strong demand, price growth continues its downward trajectory. Buyers are well informed and still have the choice to walk away. Sellers who price too high may well risk not attracting an offer.

The rentals market has also recovered from most of the pandemic-induced challenges, and we may well see an increase in demand as we head into summer offering renewed opportunities for landlords and property owners. It may also be a great time to invest in rental property, but be sure to work with a properly experienced rental agent so that you can make an informed decision and invest in the right type of property, area and price band.

Home is our Story and property our passion. The award-winning sales and rentals team at Seeff Hout Bay and Llandudno are client-centric, service-oriented and success-driven. This is reflected in our above average sales and rentals achievements. Please feel free to contact us at any time to discuss your next property journey.

Author: Gina Meintjes